This study is an investigation of the role of temperament in predicting children's psychological adjustment (internalizing and externalizing problems and positive adjustment). Temperament will be investigated within an ecological model of children's development. In this model temperament is proposed to moderate or mediate the influence of environmental (negative life events and multiple risk) and parenting risk factors and influence children stress responses (appraisal and coping) in predicting children's adjustment. Temperament will be investigated as a predictor of children's appraisals and coping, and as a moderator of the effects of environmental risk factors. Also, the transactional relation between temperament and parenting will be tested. The study will utilize a community-based sample (N of approximately 254) in order to assess normative developmental processes. Children (third and fourth grade at time 1) and parents will be recruited through children's classrooms and interviewed in the families homes. Families will be interviewed three times with the interviews occurring 1 year apart. Structured interviews and observation tasks will be conducted by trained undergraduate research assistants. Teacher reports of children's temperament and adjustment will also be obtained. Multiple regression, confirmatory factor analyses, structural equations modeling and latent growth curve modeling will be used to test the hypotheses. Findings of this study will lead to a better understanding of which children are at greatest risk for developing psychological problems in the presence of environmental risk, and the types of problems they may be most likely to develop, internalizing or externalizing. This study will also identify predictors of resilience and positive adjustment in response to stress or risk.